Wirecard AGQ2/2007
Interim Report as of June 30, 2007
wirecard
WIRECARD AG INTERIM REPORT Q2 2007
Half Year 2007 Half Year 2006
Wirecard Group
Total revenues TEUR 56,467 36,461
EBIT TEUR 13,329 8,198
Earnings per share
(basic and undiluted) EUR * 0.12 ** 0.09
Shareholders' equity TEUR 118,048 92,556
Total assets TEUR 245,900 152,620
Cash Flow from operating activities TEUR 5,197 *** (1,598)
Employees 410 366
of whom part-time employees 163 154
* If cash-effective deferred taxes were excluded, earnings per share would amount to EUR 0.14
** Taking account of the capital increase funded by company assets in 2006
*** Due to non-cash Capital Increase
Half Year 2007 Half Year 2006
Segments
EPRM Total revenues TEUR 61,144 36,333
EBIT TEUR 13,225 8,637
CCS Total revenues TEUR 4,030 3,464
EBIT TEUR 104 (424)
Other Total revenues TEUR 0 0
EBIT TEUR 0 0
Consolidation Total revenues TEUR (8,707) (3,336)
EBIT TEUR 0 (15)
Total Total revenues TEUR 56,467 36,461
EBIT TEUR 13,329 8,198
Electronic Payment/Risk Management (EPRM)
Call Center & Communication Services (CCS)
Key Data
WIRECARD AG INTERIM REPORT Q2 2007
03
Letter from the CEO 04
Consolidated Management Report 06
Wirecard Stock 16
Consolidated Balance Sheet 19
Consolidated Income Statement 21
Consolidated Cash Flow Statement 23
Consolidated Statement of Changes in Shareholder�s Equity 24
Notes 25
Contact 40
Publishing information 41
Financial Calendar 41
Content
WIRECARD AG INTERIM REPORT Q2 2007
04
Dear Shareholders:
I am delighted to join you in looking back on an extraordinarily successful business
performance recorded in the first half of 2007.
In recent months, Wirecard AG has delivered proof that the strategic milestones
established in the past several years and the integration of Wirecard Bank AG
represents solid foundations for sustained, long-term growth. Not only did we manage
to continually improve our operating result; we also succeeded in constantly
optimizing the profitability of our business model thanks to economies of scale
achieved in combination with the Wirecard Bank.
Innovative products and the constantly growing vertical integration of our portfolio of
products and services are responsible for securing a leading position for our company
on the market for electronic payment and risk management solutions.
In May this year, within the scope of our very first appearance in the virtual worlds, we
once again demonstrated the substantial innovative power of the Wirecard Group. At
the same time, by cooperating with strong partners such as the Indian Bird Group or
the International Airline Transport Association (IATA), we reinforced our sales-related
position in the core field of payment transactions on a sustained basis.
Growth of electronic trading was also way ahead of the growth rates reported by
traditional sales channels in the first half of 2007, with the commercial success of our
eCommerce customers contributing to a decisive degree to the positive development
of Wirecard AG.
In parallel, the success of prepaid products of Wirecard Bank AG marketed directly to
consumers � e.g. Internet Payment Service Wirecard - confirms the potential of this
market. In the second half of the year, we also expect the positive trend of our
consumer business to continue.
In view of the positive business trend prevailing in the first half of fiscal 2007, the
Board of Management is also optimistic in terms of its outlook for the second half of
the year and has therefore raised its EBIT growth forecast for Wirecard AG from more
than 50 per cent to more than 60 per cent for fiscal 2007.
Letter from the CEO
WIRECARD AG INTERIM REPORT Q2 2007
05
At this juncture, I would like to thank you, the shareholders of Wirecard AG, for the
confidence you have placed in us. On behalf of the Board of Management, we also
wish to express our sincere gratitude to our customers and business associates for
their positive cooperation. Above all, we have pleasure in thanking all employees,
whose dedication and commitment made the success of our company possible in the
first place.
Sincerely,
Munich/ Grasbrunn, August 2007
Dr. Markus Braun
CEO
WIRECARD AG INTERIM REPORT Q2 2007
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1. Business and underlying conditions
General economic conditions
The second quarter of 2007 was characterized by stable global economic growth and
an ongoing boom in Europe�s economies. In April, the euro reached an all-time high in
relation to the U.S. dollar. And the fundamentally sound corporate development was
rewarded by the stock markets in the second quarter. Experts have forecast robust
economic growth until the end of this year, particularly in the euro zone.
For the second quarter of this year, according to the July monthly report of Deutsche
Bundesbank and in the opinion of economic experts, forecasts in Germany indicate a
slightly lower trend in Gross Domestic Product (GDP) than expected. The German
Federal Statistical Office will present its initial estimate in mid-August 2007. According
to the �Ifo business climate index� and various barometers of cyclical trends, the odds
are in favor of a strong third quarter.
1.1 Business activities and products
Thanks to innovative products and the successful vertical integration of our portfolio of
products and services as well as the ongoing outstanding development of the global
Internet-based economy, Wirecard AG also managed to boost its operating profit yet
again in the second quarter of 2007.
Today, the Wirecard Group offers its customers a comprehensive, fully integrated
spectrum of services in the field of payment transactions � consisting of technology,
advisory expertise and the possibilities available to a bank. The products and solutions
of the Wirecard Group serve to cover all partial processes of the financial supply chain
� from risk assessments of a new customer, processing the payments generated when
shopping straight through to paying out sales partners and ancillary suppliers.
By diversifying our product range in the field of payment solutions for consumers, in
recent months we succeeded in opening up a significant new market with an
impressive growth potential. In recent months, the Internet payment service Wirecard
has been used by thousands of merchants across the globe.
A current study by MasterCard and BCG expects prepaid card products to generate a
trade volume of 164 billion U.S. dollars in Europe alone in 2010. This corresponds to
roughly a quarter of the global volume of trade, amounting to 645 billion U.S. dollars.
Eastern Europe in particular is making an impact as a key growth market. In future,
some 14 per cent of card-based payment transactions will be handled via prepaid
card products in Poland; in Russia, the percentage is expected to reach roughly 13
per cent. In parallel, the Asian market is proving to be a substantial growth driver.
Consolidated
Management Report
WIRECARD AG INTERIM REPORT Q2 2007
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1.2 Segments of reporting
The business activities of Wirecard AG are structured into the two reporting segments
of «Electronic Payment/Risk Management» (EPRM) as well as «Call Center &
Communication Services» (CCS).
Electronic Payment/Risk Management (EPRM)
The EPRM reporting segment comprises all products and services dealing with
acceptance and downstream processing of electronic payment transactions, fraud
prevention and risk management as well as the issuance of credit cards.
The reporting segment is dominated to a decisive degree by the business activities of
Wirecard Technologies AG, Wirecard Bank AG and Wirecard (Gibraltar) Ltd.. Sales
revenues of Click2Pay GmbH, Wirecard Retail Services GmbH (formerly: United
Payment GmbH) and cardSystems FZ LLC are also part of the EPRM segment. The
remaining foreign branches are primarily maintained for local sales and localization of
the products and services of the Group as a whole.
Call Center & Communication Services (CCS)
The CCS reporting segment comprises all products and services dealing with call
center supported relationship management of corporate and private customers. In
addition to its primary function to support the organization�s core business within the
scope of the EPRM segment, this reporting segment also includes a substantial
independent customer portfolio.
1.3 Board of Management and Supervisory Board
The Board of Management of Wirecard AG consists of three members. In the period
under review, the composition of the Board of Management of Wirecard AG was
unchanged as follows:
Dr. Markus Braun, CEO, Chief Technology Officer
Burkhard Ley, CFO, Chief Financial Officer
Rüdiger Trautmann , COO, Chief Sales Officer
In the period under review, the composition of the Supervisory Board of Wirecard AG
was as unchanged follows:
Klaus Rehnig, Chairman
Alfons Henseler, Deputy Chairman
Paul Bauer-Schlichtegroll, Member
In the period under review the remuneration of the Management Board and
Supervisory Board as well as the change-of-control clauses were not changed. For
details we refer to the Annual Report for 2006.
In the period under review, no transactions of a material nature were entered into with
related parties.
WIRECARD AG INTERIM REPORT Q2 2007
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2. Business trend, earnings, financial and asset position
In the second quarter and at the close of the first half of 2007, Wirecard AG managed
to bring about a further impressive improvement both in terms of sales revenues and
earnings before interest and taxes.
2.1 Revenues and earnings
In the second quarter of 2007, Wirecard AG generated consolidated sales revenues of
TEUR 29,867 (Q2 2006.: TEUR 19,341), equivalent to an increase of 54 per cent year-
on-year.
Sales revenues for the first half of 2007 overall amounted to TEUR 56,467 (first half of
2006: TEUR 36,461), equivalent to an increase of 55 per cent year-on-year.
Wirecard AG also saw a further increase in earnings before interest and taxes (EBIT)
both on a quarterly and half-year comparison.
In the second quarter alone, EBIT was up by 66 per cent, to reach TEUR 7,266 (Q2
2006: TEUR 4,386). As a result, we achieved an increase in the EBIT margin from
22.7 per cent to 24.3 per cent.
The increase in EBIT in the first half of 2007 overall amounted to 63 per cent. The
operating result improved to reach TEUR 13,329 (1st half of 2006: TEUR 8,198) - with
an increase in the margin from 22.5 to 23.6 per cent.
2.2 Earnings situation and development of key income statement items
Gross earnings (sales revenues incl. inventory changes and other own work capitalized
less material expenses) amounted to TEUR 14,547 (previous year TEUR 9,568), also
reflecting significant growth. On a half-year comparison, gross earnings improved from
TEUR 17,649 to TEUR 27,250.
Personnel expenditure in the reporting quarter reached TEUR 3,843 (Q2 2006:
TEUR 3,078). After the first half-year, this item came to TEUR 7,724 (1st 6M of 2006:
TEUR 5,785).
Other operating expenses comprise third-party services, cost of premises, valuation
adjustments to receivables, as well as administrative, sales and travel expenses. In the
second quarter, expenses were again incurred in connection with sales and marketing
activities, particularly in connection with the launch of the new card products.
Expenses came to TEUR 3,194 (Q2 2006: TEUR 2,208), equivalent to 10.7 per cent
(Q2 2006: 11.4 per cent) of sales revenues. In the first half of the year, other operating
expenses amounted to TEUR 6,457 (1st half of 2006: TEUR 4,442), which corresponds
to 11.4 per cent of sales revenues.
The level of depreciation/amortization in the Group also remained low during the last
fiscal year. Due to the investments made in connection with the integration of Wirecard
Bank AG and the newly created products in 2006 and 2007, expenditure rose from
TEUR 247 to TEUR 446 in the second quarter 2007.
In the second quarter of 2007, the financial result totaled TEUR (50) (Q2 2006:
TEUR 34).
WIRECARD AG INTERIM REPORT Q2 2007
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2.3 Tax expenditure
In the first half of 2007, the Wirecard Group achieved a tax rate without deferred taxes
of 13.66% (1st half of 2006: 11.62%). Non-cash-effective deferred taxes in the amount
of TEUR 1.854 in connection with loss carryforwards of the bank and due to own
software created led to a balance-sheet increase in the tax rate to 27.61% (prev. year:
16.91%).
2.4 Asset and financial situation
Balance sheet and liquidity
Balance-sheet equity in the consolidated financial statements as at June 30, 2007
amounted to TEUR 118,048 (December 31, 2006: TEUR 108,422). This results in an
equity ratio of 48 per cent.
Based on half-year earnings after taxes, amounting to TEUR 9,625, the balance-sheet
profit as at the reference date rose to reach TEUR 31,302 (December 31, 2006:
TEUR 21,677).
It was possible to increase non-current assets from TEUR 116,741 (December
31, 2006) to TEUR 151.803 in the period under review. Liabilities to banks came to
TEUR 9,002 (December 31, 2006: TEUR 10,917).
The ratio of current assets to current liabilities is as follows:
30.06.2007 current assets TEUR 151,803 = 1.27
current liabilties TEUR 119,206
31.12.2006 current assets TEUR 116,741 = 1.28
current liabilties TEUR 91,284
Net income and earnings per share
In the second quarter of 2007, Group earnings after taxes amounted to 4.4 million
euros (previous year: 3.7 million euros). In the first half of 2007, earnings generated
came to 9.6 million euros (1st half of 2006: 6.9 million euros).
Basic earnings per share amounted to EUR 0.05 in the second quarter (Q2 2006:
EUR 0.05) and to EUR 0.12 for the first half of 2007 (1st half of 2006: EUR 0.09). In a
year-on-year comparison, the capital increase derived from company funds needs to
be taken into account.
Earnings per share are essentially being influenced by deferred taxes this half-year1. If
the influences of deferred taxes (which are not cash-effective) were to be eliminated,
earnings per share would amount to EUR 0.14 (1st half of 2006: EUR 0.10).
WIRECARD AG INTERIM REPORT Q2 2007
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3. Segment reporting
3.1 Development of EPRM (Electronic Payment/Risk Management)
In the EPRM segment, TEUR 32,915 in sales revenues were generated in the second
quarter of 2007 (Q2 2006: TEUR 19,897). In the first half of fiscal 2007, these
amounted to TEUR 61,144 (1st half of 2006: TEUR 36,333).
In the second quarter, the operating result (EBIT) came to TEUR 7,202 (Q2 2006.:
TEUR 4,631). In a half-year comparison, EBIT rose from TEUR 8,637 to reach TEUR
13,225.
The EPRM division comprises all services in the field of payment processing,
particularly services performed by the Financial Supply Chain Management (FSCM)
software platform, by Wirecard Bank AG as well as by CLICK2PAY.
Services in the field of Electronic Payment/Risk Management are rendered primarily by
Wirecard Technologies AG, which develops and operates the platform, and by
Wirecard (Gibraltar) Ltd. Other companies included in the EPRM division are Click2Pay
GmbH and its payment method by the same name and Wirecard Retail Services
GmbH (formerly: United Payment GmbH), focusing especially on the sector of POS
(point-of-sale) and virtual terminals.
The remaining foreign branch offices are primarily responsible for selling the products
of the Group as a whole and for the localization of payment solutions.
The field of payment processing and risk management via the payment platform with
its more than 7,000 portfolio customers is the decisive and historic core business
within the Group.
The constant growth rates of the Internet and of international eCommerce as a whole -
whether in the trade sector, tourism or digital new media � are the essential mainstays
that support our growth,
If anything, the trend in the direction of industrializing the Internet reflects the rising
demand by large-scale customers for industry-specific solutions aimed at bundling all
payment flows across all sales and procurement channels.
Additional growth is harnessed by the product portfolio of Wirecard Bank AG,
positioned in the strategically important market of non-borrowing banking services for
consumers.
The encouraging development of the Internet payment service Wirecard
(www.mywirecard.com) was characterized by constant buoyancy in the quarter under
review. The positive response of critical testers and active users delivers proof of the
enormous market potential of Wirecard as a product of Wirecard Bank AG capable of
being deployed on an international scale.
WIRECARD AG INTERIM REPORT Q2 2007
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3.2 Development of Call Center & Communication Services (CCS)
The Call Center & Communications segment boosted its sales revenues slightly in the
second quarter, amounting to TEUR 1,645 (Q2 2006: TEUR 1,505) and generated EBIT
of TEUR 64 (Q2 2006: -TEUR 255).
In the first half of 2007, sales revenues reached TEUR 4,030 (1sthalf of 2006: TEUR
3,464).
Operating result II was already positive after the first quarter of 2007 and was in the
region of TEUR 104 (1st half of 2006: -TEUR (424)) after six months.
All measures that contributed to an enhancement of processes and connectivity
technology are therefore effective. Moreover, this field of activity is benefiting from an
increase in minute volumes of portfolio customers for virtual call center services and
from synergies resulting from private banking services being performed as a customer
service center for the Wirecard Bank.
4. Consolidation perimeter
The following wholly owned subsidiaries were consolidated as at the balance-sheet
date in the period under review:
Anteilsbesitz
Click2Pay GmbH, Grasbrunn (Germany) 100%
InfoGenie Ltd., Windsor, Berkshire (United Kingdom) 100%
Wirecard (Gibraltar) Ltd., (Gibraltar) 100%
Marielle Invest Business Corp., Tortola (British Virgin Islands) 100%
Wire Card Beteiligungs GmbH , Grasbrunn (Germany) 100%
Wirecard Bank AG, Grasbrunn (Germany) 100%
Wirecard Technologies AG, Grasbrunn (Germany) 100%
Wirecard Retail Services GmbH, Grasbrunn (Germany) 100%
Wirecard Communication Services GmbH*, Berlin (Germany) 100%
cardSystems FZ-LLC, Dubai (United Arabian Emirates) 100%
Pro Card Kartensysteme GmbH, Grasbrunn (Germany) 100%
* formely United Data GmbH
5. Employees
The number of permanent employees increased by 44 persons compared with the
same quarter a year earlier. Accordingly, the size of the workforce grew from 366 to
410, including part-time employees.
Since 2005, an employee participation program in the form of convertible bonds has
been in place for first and second-tier employees, which was almost completely
exploited by the end of the period under review.
Details of the subscription terms and conditions were published in the notes to the
consolidated financials statements in the 2006 Annual Report.
WIRECARD AG INTERIM REPORT Q2 2007
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6. Research & Development
In the period under review expenses in the field of R&D are included predominantly
under personnel expenses of programmers/developers with a view to continually
adjusting the platform technology.
7. Risk Report
The Board of Management has complied with the duty to establish a suitable early risk
detection system by ensuring that appropriate guidelines for suitable control and
monitoring instruments are in place for all strategic and operational management
functions.
These instruments serve to secure the Company�s ongoing business operations and
show any dangerous developments at an early stage to enable appropriate
countermeasures to be taken to correct such trends. The Board of Management
monitors risk management activities and reports to the Supervisory Board on a regular
basis.
Please refer to the risk report in the Annual Report for 2006 for more details as there
have been no changes in the intervening period of time. We wish to advise that no
risks are present that could endanger the Group as a going concern.
WIRECARD AG INTERIM REPORT Q2 2007
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8. Corporate governance and profit transfer agreement
On July 19, 2005, Wirecard AG entered into a profit transfer agreement with Wirecard
Technologies AG, with Wirecard AG as the controlling shareholder. In terms of a
resolution of August 30, 2005, the annual general meeting consented to this strategy.
In addition, the individual financial statements of Wirecard AG extend to include the
corporate governance and profit transfer agreement entered into in 2004 between
Wirecard AG � as the controlling enterprise � and Click2Pay GmbH.
9. Subsequent report
Changes in Shareholders� structure:
On July 13, 2007 Wirecard AG made the following disclosures pursuant to §§ 25.1 of
the German Securities Trading Act (WpHG):
Sloane Robinson Investment Services Limited, London, United Kingdom has
informed us, according to article 21, paragraph 1 WpHG (German Securities
Trading Act), that via shares its voting rights in Wirecard AG have exceeded the
threshold of 3% on 19th June 2007 and now amount to 3.13% (2,483,764 voting
rights). Thereof 3.13% are attributable to Sloane Robinson Investment Services
Limited according to article 22 paragraph 1 sentence 2 in connection with
paragraph 1, sentence 1 number 6 WpHG. These voting rights are held directly by
SR Global Fund LP in relation to which Sloane Robinson LLP acts as investment
manager and Sloane Robinson Investment Services Limited as managing member.
10. Outlook
For the second half of the current fiscal year, we again expect a stable economic
situation in the markets of relevance to us along with a continuation of the key
business and market trends in the first two quarters considered important for the
Wirecard Group.
The EU Commission has forecast a GDP growth rate ranging between 0.3 and 0.8 per
cent for the euro zone in the third quarter. For the fourth quarter, growth is assumed to
lie in a bandwidth of 0.2 to 0.8 per cent. For the second half of the year, the German
economy is expected to rebound, growing at approx. 2.5 per cent in 2007 as a whole.
Ongoing high and dynamic growth rates are anticipated in the Asian market, which is
constantly growing in importance for the Wirecard Group; this will be the case
especially in India and China.
In our assessment, the global demand for outsourcing services in the field of payment
transactions and risk management services will continue at an ongoing, robust level in
the second half of the year. In particular, in a global comparison the European
outsourcing market has proved to be particularly dynamic and already accounted for
some 54 per cent of new outsourcing agreements signed across the globe in the first
half of the year. Due to seasonal factors, the second half of the year traditionally sees
an increased transaction volume. In consequence of the transaction-oriented business
model of the Wirecard Group, this trend is directly reflected in our business trends.
WIRECARD AG INTERIM REPORT Q2 2007
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The successes achieved in recent months have confirmed our strategic orientation in
terms of our product and sales strategy; as a result, we are confident in our outlook for
the second half of fiscal 2007.
The comprehensive vertical integration of our portfolio of products and services
represents the basis of many of our most innovative products with the strongest
growth statistics. From acceptance of payments all the way to payouts of sales
partners and suppliers, we offer our customers blanket coverage of all partial
processes involved in the financial supply chain. In particular, solutions for payment
transactions between companies are already developing into a key growth market
today and will represent one of the central strategic mainstays of our product strategy
in the second half of the year.
In diversifying our product range in the field of payment transaction solutions for
consumers, we have extended our product portfolio on a sustained basis and have
opened up a significant market with substantial potential for the future. For the second
half of the year, we expect the positive business trend of our consumer business to
grow, not only in the European region but also in Asia.
Both our technical infrastructure and our internal processes are scaleable in the sense
that no material investments are currently expected for these fields of activity in the
second half of fiscal 2007. In the field of customer service and administration, the well-
structured processes will make it possible to achieve the expected increases for the
second half of the year without having to hire a great deal of new personnel.
In view of our positive business trend prevailing in the first half of the year and our
expectations with regard to the second half of the year, the Board of Management has
increased its EBIT growth forecast for the company in fiscal 2007 from more than 50
per cent to more than 60 per cent year-on-year.
Munich/Grasbrunn, August 2007
Wirecard AG
Dr. Markus Braun Burkhard Ley Rüdiger Trautmann
WIRECARD AG INTERIM REPORT Q2 2007
15
Wirecard stock was trading at EUR 8.48 at the beginning of the second quarter of
2007. In the course of the month of April, a price exceeding 10 euros was recorded for
the very first time. On June 12, 2007, the share price reached an all-time high of EUR
10.44. The closing price in the quarter was just under 10 euros (EUR 9,95).
The price trend as a whole in the first half of the year reflects a relatively stable
development of Wirecard AG stocks, even though higher volatility was recorded,
particularly from February to April. In June 2007, the share price trended in a sideways
direction.
As at the reference rate, average 52-week sales were in the region of 377,400 per day.
7.00
8.00
9.00
10.50
7.50
8.50
9.50
10.00
JunJan May
Q2/2007 EUR
Feb Mar Apr
Wirecard AG Stock Value TecDAX (rebased)Wirecard AG Stock Value TecDAX (rebased)
Stock data XTRA, FSE
Key figures on Wirecard stock in the period under review:
Q2 2007 Q2 2006
Number of shares (30.06.) 79,290,882 77,895,180
Capital stock EUR 79,290,882.00 77,895,180.00
Market cap. (30.06.) mn.EUR 789 382
Stock market price(30.06.) EUR 9.95 4.90
Stock market high EUR 10.44 5.84
Stock market low EUR 8.48 4.10
Wirecard Stock
WIRECARD AG INTERIM REPORT Q2 2007
16
Investor Relations
In the quarter under review, the Board of Management once again presented Wirecard
AG to a large number of institutional investors, at numerous road shows and investor
conferences.
The Wirecard share is meanwhile being monitored and commented on by national and
international financial analysts of the following institutions:
Berenberg Bank
Commerzbank
Crédit Agricole Cheuvreux
Deutsche Bank
DZ Bank
Sal. Oppenheim
SES Research
WestLB
The Board of Management and the Supervisory Board of Wirecard AG undertake to
comply with the principles of the German Corporate Governance Code and endorse
the principles of transparent and sustained corporate governance. Special measures
in this regard are the listing on the Prime Standard and accounting according to
IAS/IFRS.
Private investors can obtain all the relevant information on the Internet at
www.wirecard.com in the "Investor Relations" section.
Annual General Meeting
This year�s ordinary Annual General Meeting took place in the Haus der Bayerischen
Wirtschaft in Munich on June 14, 2007.
With a capital presence of 50.63 per cent, each item of the agenda received an
approval score of more than 99 per cent.
For instance, this included the approval of the relocation of the headquarters of
Wirecard from Berlin to Grasbrunn near Munich and the resolution concerning
authority over own shares.
The records on the Annual General Meeting are available for download on the Internet
under the Investor Relations section.
WIRECARD AG INTERIM REPORT Q2 2007
17
Basic information on Wirecard stock
Year established: 1999
Market segment: Prime Standard
Indices: TecDAX
Type of Equity: No-par-value common bearer shares
Stock exchange ticker symbols: WDI; Reuters: WDIG.DE; Bloomberg:
WDI@GR
WKN: 747206
ISIN: DE0007472060
Authorized capital No. of shares: 79,290,882
Group accounting category: Consolidated financial statements in
accordance with IAS/IFRS
End of fiscal year: 31.12.
Total common stock as at
June 30, 2007: EUR 79,290,882.00
Beginning of stock market listing: 25thth. October 2000
Board of Management: Dr. Markus Braun
CEO
Rüdiger Trautmann
COO
Burkhard Ley
CFO
Supervisory Board: Paul Bauer-Schlichtegroll
Alfons Henseler
Klaus Rehnig (Chairman)
Shareholders� structure as at
June 30, 2007: 9.46% ebs Holding GmbH
7.88% MB Beteiligungsgesellschaft mbH
3.10% K. Rehnig
3.03% T. Rehnig
3.01% William Blair & Company, LLC (US)
5.01% Massachussetts Mutual Life (US)
5.00% Vauban Fund SICAV (LU)
3.38% Oyster Asset Mgmt. S.A. (LU)
3.07% JPMorgan Asset Management
Holding Inc.
3.13% Sloane Robinson (for SR Global
Fund)
73.53% Freefloat
(In accordance with Deutsche Börse
shareholders Oyster, JPMorgan,
Massachussetts, Sloane Robinson und
Vauban are assigned to the freefloat)
WIRECARD AG INTERIM REPORT Q2 2007
18
06/30/2007 12/31/2006
ASSETS EUR EUR
I. NON-CURRENT ASSETS
1. INTANGIBLE ASSETS
a) Goodwill 53,975,150.23 54,804,379.20
b) Self-provided intangible assets 4,828,838.00 2,644,478.60
c) Other intangible assets 28,096,445.56 25,403,005.00
86,900,433.79 82,851,862.80
2. TANGIBLE ASSETS
Property, plant and equipment 887,185.98 703,930.27
3. FINANCIAL ASSETS 3,253,933.15 3,169,782.34
4. TAX ASSETS
Deferred taxes 3,054,902.54 4,069,790.82
TOTAL NON-CURRENT ASSETS 94,096,455.46 90,795,366.23
II. CURRENT ASSETS
1. INVENTORIES 87,087.57 82,576.17
2. TRADE RECEIVABLES AND OTHER
CURRENT FINANCIAL ASSETS 84,212,215.24 56,708,446.56
3. TAX ASSETS
Tax refunds 300,082.75 413,022.87
4. OTHER FINANCIAL ASSETS 0.00 0.00
5. CASH AND CASH EQUIVALENTS 67,203,818.66 59,536,922.32
TOTAL CURRENT ASSETS 151,803,204.22 116,740,967.92
Total Assets 245,899,659.68 207,536,334.15
Balance Sheet
Consolidated Balance Sheet as of June 30, 2007 (IAS/IFRS) Wirecard AG
WIRECARD AG INTERIM REPORT Q2 2007
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06/30/2007 12/31/2006
EQUITY AND LIABILITIES EUR EUR
I. SHAREHOLDERS’ EQUITY
1. Subscribed capital 79,290,882.00 79,290,882.00
2. Capital reserve 7,426,783.51 7,426,783.51
3. Consolidated accumulated profits 31,302,323.61 21,676,922.00
4. Currency translation adjustment 27,600.47 27,346.76
TOTAL SHAREHOLDERS’ EQUITY 118,047,589.59 108,421,934.27
II. LIABILITIES
1. CURRENT PROVISIONS
a) Tax provisions 2,344,881.82 1,158,381.82
b) Other current provisions 2,271,619.27 1,417,701.57
4,616,501.09 2,576,083.39
2. OTHER LIABILITIES
a) Non-current liabilities
a1) Deferred income taxes 1,903,286.50 1,063,681.30
a2) Non-current interest bearing bank
loans and overdrafts 6,500,000.00 6,500,000.00
a3) Other non-current liabilities 242,713.73 266,958.20
8,646,000.23 7,830,639.50
b) Current liabilities
b1) Trade payables 75,074,241.95 56,332,882.66
b2) Interest-bearing bank loans and
overdrafts 2,502,139.58 4,416,555.71
b3) Other financial liabilities 37,013,187.24 27,958,238.62
114,589,568.77 88,707,676.99
3. TAX LIABILITIES
Current tax liabilities 0.00 0.00
TOTAL LIABILITIES 127,852,070.09 99,114,399.88 Total shareholders' equity and liabilities 245,899,659.68 207,536,334.15
WIRECARD AG INTERIM REPORT Q2 2007
20
*Taking account of the capital increase funded by company assets in 2006
Consolidated Income
Statement
Consolidated Statement (IAS/IFRS) of Wirecard AG
For the period January 1, 2007 until June 30, 2007
Q2/2007 Q2/2006
04/01/2007 - 04/01/2006 -
06/30/2007 06/30//2006
EUR EUR EUR EUR
I. Sales 29,866,819.02 19,340,876.46
II. Increase or decrease in inventories of finished goods, work-in-
process, other own work capitalized
1. Other own work capitalized 1,209,775.47 0.00
2. Increase or decrease in inventories or finished 0.00 1,209,775.47 286,906.00 286,906.00
III. Operating expenses
1. Cost of materials (16,530,083.61) (10,059,998.59)
2. Personnel expenses (3,843,338.74) (3,078,079.68)
3. Amortisation and depreciation (446,371.67) (20,819,794.02) (247,234.22) (13,385,312.49)
IV. Other operating income and expenses
1. Other operating income 203,171.04 351,441.33
2. Other operating expenses (3,194,444.57) (2,991,273.53) (2,207,998.69) (1,856,557.36)
Net operating income 7,265,526.94 4,385,912.61
V. Financial result
1. Other interest and similar income (205,964.57) (133,614.89)
2. Financial cost 155,636.60 (50,327.97) 167,290.80 33,675.91
VI. Profit before taxes 7,215,198.97 4,419,588.52
VII. Income tax (2,851,358.46) (714,797.26)
VIII. Profit after taxes 4,363,840.51 3,704,791.26
IX. Profit carry forward 26,938,483.10 9,417,305.96
X.. Profit capital decrease 0.00 3.00
XI. Consolidated accumulated profits 31,302,323.61 13,122,100.22
Earnings per share (diluted) 0.06 0.05
Earnings per share (basic) 0.05 0.05
Weight average shares outstanding (basic) 79,290,882 * 77,854,909
Weight average shares outstanding (diluted) 79,397,361 * 77,977,445
WIRECARD AG INTERIM REPORT Q2 2007
21
Half Year 2007 Half Year 2006
01/01/2007- 01/01/2006-
06/30/2007 06/30/2006
EUR EUR EUR EUR
56,466,842.82 36,460,839.36
2,309,797.47 106,516.00
0.00 2,309,797.47 140,917.00 247,433.00
(31,527,030.91) (19,059,244.78)
(7,724,439.06) (5,785,132.43)
(821,327.48) (40,072,797.45) (487,036.56) (25,331,413.77)
1,081,499.91 1,262,932.50
(6,456,798.84) (5,375,298.93) (4,441,825.47) (3,178,892.97)
13,328,543.91 8,197,965.62
(365,456.38) (259,056.38)
333,743.22 (31,713.16) 345,690.91 86,634.53
13,296,830.75 8,284,600.15
(3,671,429.14) (1,401,108.14)
9,625,401.61 6,883,492.01
21,676,922.00 6,238,605.21
0.00 3.00
31,302,323.61 13,122,100.22
0.12 0.09
0.12 0.09
79,290,882 * 77,854,909
79,397,361 * 77,977,445
WIRECARD AG INTERIM REPORT Q2 2007
22
01/01 - 06/30/2007 01/01 - 06/30/2006
EUR EUR EUR EUR
Profit after taxes 9,625,401.61 6,883,492.01
+/- Amortisation/depreciation of non-current assets less goodwill and less
deferred taxes 821,327.48 487,036.56
+/- Amortisation/depreciation of changes in currency translation (29.32) 0.00
+/- Amortisation/depreciation on goowill 0.00 107,303.00
+/- Increase/decrease in provisions 2,040,417.70 1,102,022.88
+/- Other non-cash-related expenses/income 1,770,342.67 438,811.85
-/+ Increase/decrease in current liabilities without cash (28,161,521.43) (30,032,576.82)
+/- Increase/ decrease of other liabilities and tax liabilities 19,100,819.98 19,416,388.98
+/- Non cash-related item due to initial consolidation 0.00 0.00
= Cash flow from operating activities 5,196,758.69 (1,597,521.54)
+ Receipts from disposal of intangible assets 0.00 0.00
- Payments for investments in intangible assets (5,552,529.15) (386,794.25)
- Payments for investments on goodwill 1,011,357.83 0.00
+ Receipts from disposal of property, plant and equipment 1,218.00 28,113.75
- Payments for investments in property, plant and equipment (331,042.68) (40,825.73)
+ Receipts from disposal of financial assets 0.00 0.00
- Payments for investments in financial assets (84,150.81) (156,940.27)
Receipts from acquisitions of consolidated companies
- for investments in intangible assets 0.00 (3,842.00)
- for investments in goodwill (182,128.86) (5,503,235.25)
- for investments in property, plant and equipment 0.00 (3,788.00)
- for investments in financial assets 0.00 0.00
- for other assets 0.00 0.00
- for clearing of capital reserve 0.00 0.00
+ less acquired inventory of payment instruments 0.00 (182,128.86) 5,035,630.02 (475,235.23)
= Cash flow from investing activities (5,137,275.67) (1,031,681.73)
+ Receipts from issuance of share capital 0.00 64,938.80
- Payments from share capital factorings over clearing by capital reserve 0.00 0.00
+/- Receipts/payments on changes in borrowings 10,000.00 (54,700.00)
= Cash flow from financing activities 10,000.00 10,238.80
Net change in cash and cash equivalents 69,483.02 (2,618,964.47)
Adjustments due to currency translation of consolidation items
+/- Adjustments due to currency translation 253.71 40.13
+/- Adjustments due to consolidation items 0.00 253.71 (5,035,630.02) (5,035,589.89)
+ Cash and cash equivalents as of beginning of period 32,057,426.15 29,398,633.84
= Cash and cash equivalents as of end of period 32,127,162.88 21,744,079.48
01/01 - 06/30/2007 01/01 - 06/30/2006
EUR EUR
Non-cash related increase in equity 253.71 40.13
Hereof
non-cash capital increase by assets 0.00 0.00
Changes in currency translation 253.71 40.13
Consolidated Cash Flow
Statement
WIRECARD AG INTERIM REPORT Q2 2007
23
Common stock
Number of
shares issued Nominal value
Capital
reserve
Consolidated
acc. profit and
losses
Curreny
translation
adjustment
Total
Shareholders�
Equity
EUR EUR EUR EUR EUR
Balance as of Dec. 31, 2005 62,261,447 62,261,447.00 17,080,368.50 6,238,605.21 26,685.12 85,607,105.83
Profit after taxes 6,883,492.01 6,883,492.01
Capital increase by assets 15,579,036 15,579,036.00 (15,681,536.00) (102,500.00)
Simplified Capital decrease (3) (3.00) 3.00 0.00
Contingent Capital increase
(convertibles) 54,700 54,700.00 112,741.80 167,441.80
Changes due to currency
translation 40.13 40.13
Balance as of June 30, 2006 77,895,180 77,895,180.00 1,511,574.30 13,122,100.22 26,725.25 92,555,579.77
Balance as of Dec. 31, 2006 79,290,882 79,290,882.00 7,426,783.51 21,676,922.00 27,346.76 108,421,934.27
Profit after taxes 9,625,401.61 9,625,401.61
Changes due to currency
translation 253.71 253.71
Balance as of June 30, 2007 79,290,882 79,290,882.00 7,426,783.51 31,302,323.61 27,600.47 118,047,589.59
Consolidated Statement
of Changes in
Shareholders� Equity
WIRECARD AG INTERIM REPORT Q2 2007
24
Principles and methods
The quarterly and half-year financial statements as at June 30, 2007 � like the
consolidated annual financial statements as at December 31, 2006 � were prepared in
accordance with IAS/IFRS. The notes to the consolidated annual financial statements
as at December 31, 2006 also apply accordingly to the present quarterly and half-year
financial statements. Any departures from the above are explained below. In addition,
IAS 34 "Interim Financial Reporting" was applied.
Presentation
The presentation of the balance sheet, income statement, capital flow account and
segment reporting is effected in accordance with the consolidated annual financial
statements as at December 31, 2006.
Comparability
Marielle Invest Business Corp. was consolidated for the first time as at November 1,
2006. The initial consolidation of Pro Card Kartensysteme GmbH was performed
effective as of April 1, 2006. Accordingly, the presentation of the income statement is
only subject to a limited degree of comparability.
This also applies to the presentation of the Group�s cash flow statement. Due to the
requirements of IAS 7.39 and 7.40, adjustments were made to the cash flow statement
of the same quarter a year earlier.
Accounting and valuation methods
In the course of preparing the quarterly and half-year financial statements as at June
30, 2007, the same accounting and valuation principles were used as for the last
consolidated annual financial statements (December 31, 2006) and in the previous-
year period under review (January 1, 2006 through June 30, 2006).
Goodwill, amounting to TEUR 53,975, refers to the following cash-generating units:
06/30/2007 12/31/2006
TEUR TEUR
EPRM 53,687 54,731
CCS 288 288
Other 0 0
53,975 55,019
Less:
Impairment-charges 0 215
53,975 54,804
Notes
Notes to the Consolidated Financial Statements as at June 30, 2007, Wirecard AG
WIRECARD AG INTERIM REPORT Q2 2007
25
Wirecard Bank AG has been consolidated since January 1, 2006. The purchase was
accounted for using the acquisition method. At Wirecard AG, goodwill for Wirecard
Bank AG as at June 30, 2007 amounted to TEUR 5,142. This goodwill has been
assigned to the EPRM division.
In the half-year financial statements as at June 30, 2007, the profit transfer agreements
in place between Click2Pay GmbH and Wirecard Technologies AG as dependent
companies and of Wirecard AG as the controlling company were taken into account.
The profit transfer agreements had been registered as early as fiscal 2004 (Click2Pay
GmbH) and fiscal 2005 (Wirecard Technologies AG), respectively.
The Company utilizes the balance sheet oriented liability method of accounting for
deferred taxes in accordance with IAS No. 12. Under the liability method, deferred
taxes are determined according to the temporary differences between the valuation
rates of asset and liability items in the consolidated financial statements and the tax
balance sheets, as well as taking account of the tax rates in effect at the time the
aforesaid differences are reversed. Valuation allowances to deferred tax assets are
made if the probability of a tax benefit being realized is below 50 per cent (IAS 12,
Paragraph 24).
The consolidated income statement for the period from January 1, 2007 through June
30, 2007 includes TEUR 3,671 in income tax expenses. Essentially, these relate to
TEUR 840 in additions to deferred tax liabilities, to TEUR 1,015 in utilizations of
deferred tax assets and the income tax burden of the Group member companies
based on the tax computations for the first and second quarters.
Trade receivables and other assets reported extend to include receivables derived
from the consolidation perimeter relating to foreign subsidiaries. These companies are
not consolidated as they are of minor significance for the Group as a whole. Assets
and liabilities of companies within the subgroup of Wirecard AG were consolidated.
Shareholders� equity
The development of shareholders� equity is specified in the consolidated statement of
movements in equity capital.
The level of subscribed capital remained unchanged at TEUR 79,290,882.00 as at
June 30, 2007 and is divided up into 79,290,882 no-par value bearer shares with a
value based on a notional common stock of EUR 1.00 each.
The capital reserve likewise remains unchanged at TEUR 7,427.
WIRECARD AG INTERIM REPORT Q2 2007
26
Reporting by segment
In accordance with IAS 14, the companies whose participation certificates are traded
publicly are required to publish information (segment revenues, segment expenses,
segment earnings, segment assets and segment liabilities) regarding the operational
business segments or geographical segments (in each case, cf. IAS 14, paragraph 9)
and notes concerning their products and services, locations, as well as main
customers.
As in the past, sales revenues are segmented geographically by production sites. The
segmentation in Europe includes apart from Wirecard (Gibraltar) Ltd. and InfoGenie
Ltd. the new company Marielle Invest Business Corp.. In the segment of "Other foreign
countries", the company CardSystems FZ-LLC is included Moreover, sales revenues
are segmented according to the following operating divisions: In this respect, we
distinguish between the divisions of "Electronic Payment & Risk Management", "Call
Center & Communication Services" and "Other".
Electronic Payment & Risk Management (�EPRM�) represents the biggest and most
important segment by far for the Wirecard Group. In this division, all products and
services from the comprehensive portfolio of financial services are listed. This segment
also extends to include Wirecard Bank AG, which substantially expands the services
along the financial supply chain.
Call Center & Communication Services ("CCS") is the segment in which we report the
extraordinary value-added depth of our call center activities, with the other products
such as after-sales service of our customers and mailing activities also being included
as sub-categories.
In the segment "Other", items are listed that cannot be assigned to the classifications
of the other divisions indicated above.
WIRECARD AG INTERIM REPORT Q2 2007
27
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Regional revenue breakdown
Germany 52,169 27,328 27,751 14,021
Europe 12,955 12,469 6,759 7,381
Other countries 50 0 50 0
65,174 39,797 34,560 21,402
Consolidations (8,707) (3,336) (4,693) (2,061)
56,467 36,461 29,867 19,341
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Breakdown of total revenue by operating divisions
Call Center & Communication Services 4,030 3,464 1,645 1,505
Electronic Payment & Risk Management 61,144 36,333 32,915 19,897
Other 0 0 0 0
65,174 39,797 34,560 21,402
Consolidations (8,707) (3,336) (4,693) (2,061)
56,467 36,461 29,867 19,341
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Operating result I by operating divisions*
Call Center & Communication Services 2,531 2,013 1,053 885
Electronic Payment & Risk Management 24,719 15,667 13,514 9,204
Other 0 0 0 0
27,250 17,680 14,567 10,089
Consolidations 0 (31) (20) (521)
27,250 17,649 14,547 9,568
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Operating result I by regions*
Germany 21,898 12,986 12,720 7,755
Europe 5,324 4,707 1,815 2,342
Other 28 (13) 32 (8)
27,250 17,680 14,567 10,089
Consolidations 0 (31) (20) (521)
27,250 17,649 14,547 9,568
*Revenues plus inventory changes and other work capitalized minus cost of material.
WIRECARD AG INTERIM REPORT Q2 2007
28
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Operating result II by operating divisions (EBIT)
Call Center & Communication Services 104 (424) 64 (255)
Electronic Payment & Risk Management 13,225 8,637 7,202 4631
Other 0 0 0 0
13,329 8,213 7,266 4,376Consolidations 0 (15) 0 10
13,329 8,198 7,266 4,386
Half Year 2007 Half Year 2006 Q2 2007 Q2 2006
TEUR TEUR TEUR TEUR
Operating result II by regions (EBIT)
Germany 8,428 3,875 5,659 2,059
Europe 5,085 4,422 1,702 2,258
Other (184) (84) (95) 59
13,329 8,213 7,266 4,376Consolidations 0 (15) 0 10
13,329 8,198 7,266 4,386
06/30/2007 12/31/2006
TEUR TEUR
Non-current assets by regions
Germany 84,407 82,966
Europe 20,824 18,051
Other 3,285 3,483
108,516 104,500 Consolidations (17,474) (17,774)
91,042 86,726
06/30/2007 12/31/2006
TEUR TEUR
Non-current assets by operating divisions
Call Center & Communication Services 326 619
Electronic Payment & Risk Management 108,190 103,881
Other 0 0
108,516 104,500 Consolidations (17,474) (17,774)
91,042 86,726
Deferred tax assets are not taken into account in the process
WIRECARD AG INTERIM REPORT Q2 2007
29
06/30/2007 12/31/2006
TEUR TEUR
Depreciation of intangible assets
Germany 477 391
Europe 0 0
Other countries 200 400
677 791 Depreciation arising from consolidation (3) 208
674 999 Depreciation of tangible assets
Germany 142 292
Europe 5 22
Other countries 0 0
147 314 Depreciation arising from consolidation 0 (1)
147 313 Depreciation of financial assets
Germany 0 0
Europe 0 0
Other countries 0 0
0 0 Depreciation arising from consolidation 0 0
0 0
Total depreciation 821 1,312
WIRECARD AG INTERIM REPORT Q2 2007
30
06/30/2007 12/31/2006
TEUR TEUR
Investments by regions *
Investments in intangible assets
Germany 2,754 6,403
Europe 2,778 18,000
Other countries 0 107
5,532 24,510 Investments from consolidation 20 0
5,552 * 24,510
Investments in tangible assets
Germany 331 112
Europe 0 0
Other countries 0 0
331 112 Investments from consolidation 0
331 112
Investments in financial assets
Germany 84 17,803
Europe 0 8
Other countries 0 0
84 17,811 Investments from consolidation 0 (17,546)
84 265
Total Investments 5,967 24,887
* Excluding investments from the acquisition of consolidated companies.
WIRECARD AG INTERIM REPORT Q2 2007
31
06/30/2007 12/31/2006
TEUR TEUR
Investments by operating divisions *
Investments in intangible assets
Call Center & Communication Services 0 94
Electronic Payment & Risk Management 5,532 24,416
Other 0 0
5,532 24,510 Investments from consolidation 20 0
5,552 24,510
Investments in tangible assets
Call Center & Communication Services 84 30
Electronic Payment & Risk Management 247 82
Other 0 0
331 112 Investments from consolidation 0 0
331 112
Investments in financial assets
Call Center & Communication Services 0 0
Electronic Payment & Risk Management 84 17,811
Other 0 0
84 17,811 Investments from consolidation 0 (17,546)
84 265
Total Investments 5,967 24,887
* Excluding investments from the acquisition of consolidated companies.
WIRECARD AG INTERIM REPORT Q2 2007
32
06/30/2007 12/31/2006
TEUR TEUR
Regional segment liabilities
Germany
1. Provisions 4,012 1,489
2. Other liabilities
a) Non-current liabilities 2,145 246
b) Current liabilities
b1) Trade payables 40,134 34,619
b2) Current financial activties 2,502 1,917
b3) Other current liabilities 105,607 75,472
3. Tax liabilities 0 0
154,400 113,743
Europe
1. Provisions 605 3
2. Other liabilities
a) Non-current liabilities 6,500 6,500
b) Current liabilities
b1) Trade payables 34,938 21,705
b2) Current financial activties 0 2,500
b3) Other current liabilities 13,003 11,118
3. Tax liabilities 0 0
55,046 41,826
Other countries
1. Provisions 0 1
2. Other liabilities
a) Non-current liabilities 0 0
b) Current liabilities
b1) Trade payables 2 19
b2) Current financial activties 0 0
b3) Other current liabilities 3,873 4,538
3. Tax liabilities 0 0
3,875 4,558 213,321 160,127
Consolidations (85,469) (61,013)
Total regional segment liabilities 127,852 99,114
WIRECARD AG INTERIM REPORT Q2 2007
33
06/30/2007 12/31/2006
TEUR TEUR
Segment liabilities by operating divisions
Call Center & Communication Services
1. Provisions 1,270 390
2. Other liabilities
a) Non-current liabilities 242 246
b) Current liabilities
b1) Trade payables 444 1,069
b2) Current financial activties 2,500 0
b3) Other current liabilities 1,930 1,072
3. Tax liabilities 0 0
6,386 2,777
Electronic Payment & Risk Management
1. Provisions 3,347 1,103
2. Other liabilities
a) Non-current liabilities 8,403 6,500
b) Current liabilities
b1) Trade payables 74,630 55,274
b2) Current financial activties 2 4,417
b3) Other current liabilities 120,553 90,056
3. Tax liabilities 0 0
206,935 157,350
Other
1. Provisions 0 0
2. Other liabilities
a) Non-current liabilities 0 0
b) Current liabilities
b1) Trade payables 0 0
b2) Current financial activties 0 0
b3) Other current liabilities 0 0
3. Tax liabilities 0 0
0 0 213,321 160,127
Consolidations (85,469) (61,013)
Total Segment liabilities by operating divisions 127,852 99,114
WIRECARD AG INTERIM REPORT Q2 2007
34
Notes to the consolidated cash flow statement
The Group's capital flow account is prepared in accordance with IAS 7 (Cash flow
Statement). It discloses the payment flows in order to determine the source and
application of cash and cash equivalents. In doing so, it distinguishes between
changes in funding based on current business, investment and financing activities.
Method used to determine cash and cash equivalents
For purposes of the cash flow statement, a cash fund is used, consisting of cash and
cash equivalents. Cash includes cash in hand and sight deposits with banks.
Cash equivalents comprise current, extremely liquid financial investments that can be
converted at any time into certain amounts of cash and are only subject to negligible
fluctuations in value.
As at June 30, 2007 and June 30, 2006 (previous year), respectively, only cash and no
cash equivalents were held.
Reconciliation statement to the balance of financial resources according to IAS 7.45
The balance of financial resources at the end of the period includes cash in hand and
bank balances included in the line item cash and cash equivalents (June 30, 2007:
TEUR 67,204; June 30, 2006: TEUR 31,553), less current (immediately due and
payable) liabilities to banks (June 30, 2007: TEUR 2; June 30, 2006: TEUR 2,467)
included in the line item �current, interest-bearing liabilities�.
In addition, current customer deposits from banking operations (June 30, 2007: TEUR
35,075; June 30, 2006: TEUR 7,341) were deducted or taken into account in the
balance of financial resources. Due to this state of affairs, the figures of the previous-
year quarter were adjusted accordingly.
The effects of currency translation and changes to the consolidation perimeter are
adjusted in the course of the calculation.
WIRECARD AG INTERIM REPORT Q2 2007
35
06/30/2007 06/30/2007 06/30/2006 06/30/2006
EUR EUR EUR EUR
Cash and cash equivalents 67,203,818.66 31,552,580.46
of which, cash
(cash in hand and bank balances) 67,203,818.66 31,552,580.46
of which, cash equivalents 0.00 0.00
current, interest-bearing liabilities (2,502,139.58) (2,467,167.59)
of which, current liabilities to banks (2,139.58) (2,467,167.59)
67,201,679.08 29,085,412.87
Reconciliation with the balance of financial resources
current, trade payables liabilities (75,074,214.95) (51,676,846.62)
of which, current customer deposits from banking
operations 0.00 (7,341,333.39)
current, other financial liabilities (37,013,187.24) (221,356.78)
of which, current customer deposits from banking
operations (35,074,516.20) 0.00
Balance of financial resources at end of period 32,127,162.88 21,744,079.48
Interest received /paid in accordance with IAS 7.31
Interest received in the first half of 2007 amounted to EUR 241,717.41. Interest paid in
the first half of 2007 came to EUR 251,468.38.
The respective cash flows from interest paid and interest received were each
constantly classified as operating activities.
Cash flows from income taxes in accordance with IAS 7.35 and 7.36, respectively
Income taxes paid in the first half of 2007 (cash flows from income taxes) amounted to
EUR 798,548.72 and were constantly classified as operating activities.
WIRECARD AG INTERIM REPORT Q2 2007
36
Employees
As at June 30, 2007 the Group�s workforce (incl. the Board of Management)
comprised 247 employees, 163 of whom were employed part-time.
These were engaged in the following functions:
06/30/2007 06/30/2006
Board of Management 3 3
Distribution 70 56
Administration 64 44
Customer Service 197 211
Research and Development 76 52
Total * 410 * 366
* of which 163 part-time-employees in 2007 and 154 in 2006
Warranty by the statutory representatives and notice in
accordance with §37y of the German Securities Trading Act
(WpHG) read in conjunction with § 37w par. 2 No. 3 of WpHG
We warrant to the best of our knowledge that in accordance with the accounting
principles to be applied for interim reporting purposes, the Group's interim financial
statements convey a true and fair view of the Group�s asset, financial and earnings
position and that in the Group interim management report, the course of business
including the operating result and the Group�s overall situation are described in such a
manner as to convey a true and fair view of actual conditions prevailing, including the
essential opportunities and risks inherent in the Group�s foreseeable development in
the remaining fiscal year.
Munich/Grasbrunn, August 16, 2007
Wirecard AG
The Board of Management
Dr. Markus Braun Burkhard Ley Rüdiger Trautmann
WIRECARD AG INTERIM REPORT Q2 2007
37
Certificate following an auditors� review
Certificate following an auditors� review of abridged consolidated interim financial
statements in accordance with the IFRS for interim reporting purposes as applicable in
the EU, and consolidated interim management reports.
To: Wirecard AG, Grasbrunn
We have subjected the abridged consolidated interim financial statements - consisting
of an abridged balance sheet, an abridged income statement, an abridged cash flow
statement, an abridged statement of equity movements as well as selected
explanatory notes - and the consolidated interim management report of Wirecard AG,
Grasbrunn, for the period from January 01, 2007 through June 30, 2007, which are
elements of the half-year financial report in accordance with § 37w WpHG, to an
auditors� review. The statutory representatives of the company are responsible for
preparing the abridged consolidated financial statements in accordance with the IFRS
for interim reporting purposes as applicable in the EU and the consolidated interim
management report in conformity with the provisions of WpHG applicable to
consolidated interim management reports. Our task is to issue a certificate on the
abridged consolidated interim financial statements and the consolidated interim
management report on the basis of our auditors� review.
We conducted the auditors� review of the abridged consolidated financial statements
and of the consolidated interim management report in accordance with the principles
laid down by the German Institute of Certified Public Accountants (Institut der
Wirtschaftsprüfer � IDW) for audits of financial statements. According to the principles
in question, an auditors� review is to be planned and performed in such a manner as to
ensure that upon making a critical assessment we can safely rule out, to a certain
degree, the possibility that the abridged consolidated interim financial statements are
not essentially in conformity with the IFRS for interim reporting as applicable in the EU
and the consolidated interim management report prepared is not essentially in
conformity with the provisions of WpHG applicable to consolidated interim
management reports. An auditors� review is primarily confined to questioning
employees of the company and to making analytical assessments; accordingly, it does
not provide the same level of certainty as a proper audit of the annual financial
statements. Since we were instructed not to perform a proper audit of the annual
financial statements, we cannot issue an auditors' certificate.
WIRECARD AG INTERIM REPORT Q2 2007
38
On the basis of our auditors' review, we did not encounter any facts and
circumstances inducing us to assume that the abridged consolidated interim financial
statements prepared were not in conformity in all material respects with the IFRS for
interim reporting purposes as applicable in the EU, or that the consolidated interim
management report was not in conformity in all material respects with the provisions
of WpHG applicable to consolidated interim management reports.
München, August 16, 2007
Control5H GmbH
Audit firm
Roland Weigl Ulrich Burkhardt
Auditor Auditor
39
Headquarters
Wirecard AG
Bretonischer Ring 4, 85630 Grasbrunn, Deutschland
Ph.: +49 (0) 89 4424 - 0400
Fax: +49 (0) 89 4424 - 0500
Mail: [email protected]
Branch Office
Wirecard AG
Voigtstraße 31, 10247 Berlin, Deutschland
Ph.: +49 (0) 30 7261 02 - 0
Fax: +49 (0) 30 7261 02 - 199
Mail: [email protected]
Office Gibraltar
Wirecard (Gibraltar) Ltd.
Suite 3a Icom House 1/5, Gibraltar
Registered Adress: 57/63 Line Wall Road P.O. Box 199, Gibraltar
Ph.: +350 50 712
Fax: +350 49 778
Mail: [email protected]
Contact
40
Publisher
Wirecard AG
Bretonischer Ring 4, 85630 Grasbrunn, Deutschland
Tel.: +49 (0) 89 4424 - 0400
Fax: +49 (0) 89 4424 - 0500
Mail: [email protected]
Content
Wirecard AG
Translation
The German wording of this report is the final and binding version.
Fianancial Calendar
Please visit our website where you will find news and events at the Investor Relations
section:
www.wirecard.com
Wirecard AG Investor Relations Office Munich
Bretonischer Ring 4, 85630 Grasbrunn, Germany
Tel.: +49 (89) 4424 0400
Fax +49 (89) 4424 0500
Mail: [email protected]
Publishing
information